Ukraine to sign trade deal with Russia

Posted on: 22/10/2011

Ukraine is signing a free trade agreement with Russia and other members of Former soviet states. The president Viktor Yanukovych is taking a closer look at the possible benefits of Kiev joining a Russia-led customs union - an economical organisation which is seen to be an alternative to Ukraine's integration into the EU Customs Union

It is feared by some experts that this move will put Ukraine at loggerheads with both its Western partners - the EU and the USA. Ukraine has been warned that the gap of misunderstanding and tension with all neighbours is the way to international isolation so they have to play it carefully and resolve it quickly.

The European Commission has postponed the scheduled Thursday meeting with President Victor Yanukovych in Brussels which casts doubt on the future integration of Ukraine. But Experts say displaying their concerns over what's described as persecution in the country has caused the European Union to virtually push the Ukraine in the arms of Moscow. It is believed that large Ukrainian businesses still see the benefit in economic cooperation with the EU, so who knows, and some experts believe that Ukraine joining the Custom Union may settle the bitter dispute with Russia on gas prices.

The Russian President Dmitry Medvedev has warned Ukraine not expect any favours.